Its contents are a closely guarded secret.

The speech is a chance to report back on what the Kremlin has achieved over the last year, and to set out what it still wants to get done.

Mr Medvedev is expected to touch on his pet theme - the need for modernisation of Russian society, its economy and infrastructure.

He may also talk about the country's political system in his address to both houses of parliament.

Just a few days ago, in his video blog, President Medvedev warned Russia was in danger of "political stagnation" if it did not create a more level playing field for opposition parties.

Observers will be watching closely for any hints about the president's own plans for the future and whether he intends to run again for president at the next election.

Many Russians suspect that, in 2012, Prime Minister Vladimir Putin will replace him and return to the presidency.